# Propylene: Production route

Four ways to make propylene, and why PDH took over

Source page: https://www.materialinsights.org/chemicals/propylene/routes/

What this tab covers How it is made: the main production routes or, for product families, the main product types and technologies, compared on share of supply, inputs per tonne, plant scale, yield, co-products and unit cost.

Propylene has four main sources. Steam crackers make it as a co-product of ethylene, so supply falls as crackers move to ethane. Refinery FCC units recover it from cracked gas. On-purpose PDH plants convert propane, mostly imported from the US and Middle East, and dominate recent Chinese additions. Coal and methanol to olefins (CTO/MTO) in China co-produce ethylene and propylene. Metathesis of ethylene and butenes is a smaller balancing route.

#### Routes compared

| Route | Share of supply | Inputs per tonne | Typical scale | Yield | Co-products | Unit cost |
|---|---|---|---|---|---|---|
| **Steam cracking (co-product)** | about 45-50% of global output (indicative) | allocated share of about 3.3 t naphtha per t ethylene (indicative) | 0.4-0.7 Mt/yr propylene per cracker; Huajin Aramco Panjin 0.7 Mt/yr | propylene to ethylene ratio about 0.5 (naphtha) | ethylene, butadiene, aromatics | tied to naphtha; break-even near $800/t in Dec 2025 (ChemOrbis) |
| **Refinery FCC recovery** | about 25-30% of global output (indicative) | refinery gas oil; incremental cost low | 0.2-1.0 Mt/yr per refinery; Reliance Jamnagar and IOCL Paradip are large FCC sources | 4-6% of FCC feed, up to about 20% in petro-FCC (indicative) | gasoline, LPG, cycle oils | low marginal cost; valued against LPG fuel |
| **Propane dehydrogenation (PDH)** | about 15-20% of global output and about half of 2024-2028 additions | about 1.2 t propane per t propylene (indicative) | 0.5-1.5 Mt/yr; Enterprise Products runs two 1.5 Mt/yr US units | about 85% selectivity | about 0.04 t hydrogen per t propylene (indicative) | US PDH variable margins averaged $254/t to Nov 2025, forecast $122/t for Dec 2025; above $1,600/t at times in 2020-2024 |
| **Coal or methanol to olefins (CTO/MTO)** | about 10% of global output, almost all China (indicative) | about 3 t methanol per t light olefins (indicative) | 0.3-0.9 Mt/yr propylene | about 40-45% propylene in olefin product (indicative) | ethylene, butenes | not published |

#### How each route works
**Steam cracking (co-product)**

Naphtha or LPG crackers yield 15-17% propylene by weight alongside ethylene. Ethane crackers yield almost none, so the US and Middle East shift to ethane cut propylene supply and created the opening for PDH.

Large, integrated supply, but not controllable on its own.
 ChemOrbis Dec 2025; yields indicative **Refinery FCC recovery**

Fluid catalytic crackers in refineries make 4-6% propylene on feed, more with high-severity catalysts (ZSM-5 additive). A splitter upgrades it to polymer grade.

Cheap, but declines if refineries shrink gasoline output.
 indicative (industry standard) **Propane dehydrogenation (PDH)**

Propane is dehydrogenated over platinum-tin (Oleflex) or chromium oxide (Catofin) catalysts at about 600°C. Selectivity is high and hydrogen is co-produced. Economics depend on the propylene-propane spread.

Single product and fast to build, but exposed to imported propane prices and tariffs.
 S&P Global Platts H1 2026; Argus May 2024 **Coal or methanol to olefins (CTO/MTO)**

Methanol from coal gasification is converted over SAPO-34 zeolite to ethylene and propylene, with the ratio tuned between about 0.8 and 1.3.

Uses domestic coal, but very high CO2.
 indicative (IEA 2018) Unit economics are indicative ranges from the sources named; costs move with feedstock and energy prices, plant size and region.

## Other sections

- [Summary](https://www.materialinsights.org/chemicals/propylene/index.md)
- [Overview](https://www.materialinsights.org/chemicals/propylene/overview/index.md)
- [Correlation](https://www.materialinsights.org/chemicals/propylene/correlation/index.md)
- [Production](https://www.materialinsights.org/chemicals/propylene/production/index.md)
- [Feedstocks](https://www.materialinsights.org/chemicals/propylene/feedstocks/index.md)
- [Cycles](https://www.materialinsights.org/chemicals/propylene/cycles/index.md)
- [Trading](https://www.materialinsights.org/chemicals/propylene/trading/index.md)
- [Movement](https://www.materialinsights.org/chemicals/propylene/movement/index.md)
- [Regulation](https://www.materialinsights.org/chemicals/propylene/regulation/index.md)
- [Characteristics](https://www.materialinsights.org/chemicals/propylene/characteristics/index.md)
- [Emissions](https://www.materialinsights.org/chemicals/propylene/emissions/index.md)
- [Relationships](https://www.materialinsights.org/chemicals/propylene/links/index.md)